1099 Preparation
When you pay contractors and vendors over $600, the IRS expects a 1099. We handle the preparation and filing so you stay compliant.
What This Is
If you paid a contractor, freelancer, or vendor more than $600 during the year, the IRS wants to know about it. That means filing a 1099-NEC or 1099-MISC depending on the type of payment. These forms report income you paid to people who aren’t your employees.
The forms need to go to the recipient by January 31. They also need to be filed with the IRS by the same deadline. Miss it and you’re looking at penalties. File the wrong amount and you’ll be correcting it later. This service handles the entire process so the forms go out correctly and on time.
What Gets Filed
What Gets Filed
1099-NEC forms for contractors and service providers. 1099-MISC for rent payments, royalties, and other types of income. We determine which form applies to each payee, verify the amounts, and prepare everything for filing with the IRS and delivery to recipients.
The Process
The Process
We review your records for the year to identify everyone who needs a 1099. We verify W-9 information is on file, calculate the total amounts paid, prepare each form, and handle the filing. You get copies for your records and confirmation that everything was submitted.
Why This Matters
The IRS takes 1099 reporting seriously. Fail to file and you’re looking at penalties that start at $60 per form and go up from there depending on how late you are. File with incorrect information and there are penalties for that too. The amounts add up quickly when you have multiple contractors.
January is already a busy time for business owners. The 1099 deadline shows up right when you’re trying to close out the previous year, get organized for tax season, and keep the business running. It’s easy to forget about until it’s almost too late, then scramble to pull everything together.
The W-9 Problem
The W-9 Problem
You can’t file a 1099 without the recipient’s tax identification number. That means collecting W-9 forms from every contractor before you can send their 1099. If you didn’t collect it when you started working together, you’re chasing people down in January hoping they respond in time.
The Tracking Problem
The Tracking Problem
Who did you pay over $600? Which payments were to contractors versus vendors that don’t require a 1099? Did you pay them through a third party processor that handles its own reporting? These questions are hard to answer in January if your records aren’t organized throughout the year.
What Changes
The deadline comes and goes without drama. Every contractor who needs a 1099 receives one. The IRS gets their copies on time. You have documentation showing what was filed and when. No penalties. No corrections to file later because something was missed.
Your contractors receive their forms when they expect them. That matters because they need those documents to file their own taxes. Sending 1099s late or with wrong information creates problems for people you work with and reflects poorly on your business.
Accurate Reporting
Accurate Reporting
Every form goes out with the correct amounts and tax identification numbers. We verify the information before filing so you’re not dealing with IRS notices months later asking why the 1099 you filed doesn’t match what the recipient reported on their return.
Complete Documentation
Complete Documentation
You receive copies of every 1099 that was filed along with confirmation of submission to the IRS. When tax time comes, your preparer has what they need. If questions come up later, you have records showing exactly what was reported and when.
Greater Houston's Small Business Bookkeeping Partner
The Next Step:
A Quick Conversation
Tell us about your business and what you need help with. We'll listen, ask a few questions, and give you a straightforward quote.